Oil Slides After China Asks Iran To Limit Houthi Attacks on Saudi Oil Facilities

Saudi Arabia, asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure that have threatened a second oil export route in the Middle East.

Brent crude futures settled at $103.87 a barrel, and USWTI crude finished at $100.30 a barrel. For the week, Brent fell 0.7 percent while WTI gained 0.2 percent.

Oil prices have moved up steadily in the last few weeks as the US and Iran resumed attacks on each other and the Iran-aligned Houthis also stepped up their militaryactivities.

The recent action, coupled with refining capacity issues worldwide, has pushed up the prices of key fuels such as diesel in major markets.

Despite the reported intervention by China, analysts say the outlook remains murky. Meanwhile, the Strait of Hormuz remains largely cut off, with just four commodity vessels passing through on Thursday.

Asia spot prices hit a fresh 45-month high amid fierce competition for supply

Asian spot liquefied natural gas prices hit a new 45-month high this week as disruptions caused by the conflict in the Middle East and strong South Asian demand ahead of winter continued to support prices and intensify competition with Europe.

The average LNG price for October delivery into northeast Asia was $27.00 per million British thermal units, up from $26.00 per mmBtu the weekbefore.

Global spot gas prices remained elevated over the past week as Europe and Asia continued to compete for cargoes amid growing expectations that the supply situation will persist into winter.

In Europe, the Dutch TTF gas price settled at $26.62 per mmBtu, posting a weekly loss of 1.5 percent. The physical LNG market remained comparatively supported by ongoing concerns over Europe’s storage levels, which were around 68.5 percent full, and the need to secure winter supply.

— By The Al-Attiyah Foundation